Cerberus fundraising to test market

By

Jennifer Bollen

November 29, 2010 6:15 pm GMT

US private equity firm Cerberus Capital Management is plotting a return to the fundraising market early next year in a key test of investor confidence following its high-profile problems with its investments in car maker Chrysler Group and lender GMAC.

The firm is expected to raise substantially less than the $7.5bn it raised for its 2006 fund, according to sources, with one saying it may be as much as 20% less. But another source said the firm had already received inquiries from investors. Cerberus declined to comment.